LOCAL BUSINESS DEVELOPMENT (LBD)

COMPLIANCE BRIEFING

To Maximize Local Spin Offs from Oil & Gas Activities By Maximizing Use of Local Workforce and Local Goods and

Services…

LBD Objectives & KPI

LBD Directive No.1

End Market Domination

No Monopoly

Enable more local companies participation

Open up business opportunities for new companies

Create level playing field

Issued 2011

LBD Directive No.2

Increase use of LocalContent

• Local Workforce• Local Goods and Services• Local Financing• Local Subcontractors

Drive active ownership

LBD Quadrant Framework

LBD data reporting 3 timesper year

Issued 2012

GUIDELINES for Directive 2 on Local Business Development Framework for the Oil & Gas Industry

Page 27

LBD Directive No.2 –LBD Allocation of Contract

GU

IDELIN

ES for Directive 2 on Local Business D

evelopment Fram

ework for the O

il & Gas Industry

Page 29

GU

IDELINES for D

irective 2 on Local Business Developm

ent Framework for the O

il & Gas Industry

Page 30

GUIDELINES for Directive 2 on Local Business Development Framework for the Oil & Gas Industry

Page 27

Bumiputra & Local Companies ONLY

Quadrant determined by: Complexity of the work Technology required to execute

the work The Approved Contract Value

LBD Directive No.2 –LBD Quadrants

LBD Online Reporting

LBD Data Monitoring & Reporting

Company Details: Name of Owners, Percentage of Ownership, Description of Business, Contact Details etc.

LBD Data Monitoring & Reporting

Company Workforce

Breakdown of Workforce

Breakdown of Workforce

Local Content

LBD Data Monitoring & Reporting

2016

LBD Progress To Date

• <15% Local

Spending

• ~20,000 Jobs

• <50% Local

Employed

• No Local

Company

Venturing

Overseas

• 21% Local

Spending

• 24,350 Jobs

- 13,240

(54%) Local

Employed

• 1 Local

Company

Venturing

Overseas

Prior 20122013

• 39% Local

Spending

• 26,647 Jobs

- 15,981

(60%) Local

Employed

• 2 Local

Company

Venturing

Overseas

• 15 New

Local Companies

2014

• 54% Local

Spending

• 26,205 Jobs

-16,495

(63%) Local

Employed

• No Local

Company

Venturing

Overseas

Revenue

• 10 New

Local

Companies

2015

Target

• 54% Local

Spending

• 27,500 Jobs

- 17,600

(64%) Local

Employed

• 4 Local

Company

Venturing

Overseas

Target

• 80% Local

Spending

• 50,000

Jobs

- 40,000

(80%) Local

Employed

• 30 Local

Company

Venturing

Overseas

2035

Applicability:

Local employees

ND and below qualification

The Reasonable Wage (RW):

• Onshore - B$700.00 per month ( Technical workers only )

• Offshore - B$1,000.00 per month ( Technical & Non-

technical workers offshore )

• Working hours:

Onshore/Offshore Shift period as a maximum- 2

weeks on / 2 weeks off

Local Seaferer- 1month on/ 10 days off

Definition: Basic reasonable wage to which a Local Employee is

entitled under his or her contract of employment but doesnot include: Overtime payment Bonus/annual salary supplements Productivity incentive Any allowance

Prioritization of the use local goods and services

Formulation of LBD Management

Local Content Opportunity Framing report for major projects/contracts/ agreements

Prioritization of the use of local financial institutions

To submit the LBD Performance Report 3 times a year

To provide conducive environment for the employment of locals (e.g Reasonable

Wage, Career Development etc)

To provide report to the EDPMO on any difficulties or failures to fulfill the LBD

requirements

Shall adopt the LBD Allocation of Contract